When the new Weeklys list came out around lunchtime there was shock and awe at The Options Institute. Marty Kearney, the grand master of CBOE blogging told me to hold off publishing this blog until I had confirmed that yes, 40 names were added to the Weeklys list this week. The new tickers and stock names appear in the list below. There are nine new exchange trade funds and thirty one new stocks being added to the list this week.
A couple of stocks with Weeklys available may experience some extra volatility next week. First, Apple (AAPL – 498.69) will be unveiling their new iPhone at an event next Tuesday (September 10). Since word leaked out about the meeting the CBOE Equity VIX® on Apple (VXAPL – 30.62) has move up to the low 30’s. This is a level not seen since the last earnings report. If we call the 500 strike options that at the money contracts the AAPL 500 Call and AAPL 500 Put that both expire this Friday (before the meeting) have implied volatilities in the 24% – 25% range. The same options that expire on the following Friday (after the meeting) are pricing in implied volatilities in the 33% to 34% range. One of the fun things about having so many expirations available is the ability to compare the pricing of options that will be impacted by an earnings announcement or new product event. Finally, also keep an eye on short dated Corning (GLW – 14.18) options around the AAPL meeting. GLW is a new addition to the list and makes that cool glass that is a key component of the iPhone.
Being a die-hard yogi I’m always excited when Lululemon Athletica (LULU – 70.10) reports their earnings. Their report is scheduled for next Thursday (September 12) before the market opens. Three months ago the stock dropped just over 17.5% based on their earnings release. The average price move (absolute value) for LULU’s post earnings reaction is just under 8.00% (7.91% for the quants) over the last 12 announcements. Next Thursday will be a fun one to watch and next Wednesday I’ll check in on what LULU options are pricing for a move off earnings.